ICAI revised Guidance Note on Schedule III of Companies Act 2013 – January 2022 Edition

ICAI revised Guidance Note on Schedule III of Companies Act 2013 – January 2022 Edition

ICAI issues revised Guidance Note on Schedule III of Companies Act 2013 – January 2022 Edition. The Ministry of Corporate Affairs (MCA) has revised the Schedule III to the Companies Act, 2013 vide Notification dated 24th March 2021 by introducing additional disclosure requirements in the financial statements to improve governance.

The ICAI in 2017 issued a Guidance Note (first edition) on Division I–Non Ind AS of Schedule III to the Companies Act 2013. The first edition was revised in 2019.

Now, in view of the said amendment to the Schedule III in 2021, the January 2022 edition of the Guidance Note incorporates comprehensive guidance on the additional disclosures introduced by the MCA.

The Guidance Note has been issued in three Divisions/part as under:

• Object of assessment proceedings is not to find empirically correct solution on every fact issue – HC
• Penalty u/s 270A deleted as assessee filed revised computation during scrutiny
• Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT
• Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT
• Once assessee discharges primary onus, it shifts to AO to bring evidence to contrary – ITAT